CEO DATELINE - Medical, insurance groups wary of Trump order seeking price transparency
CEO DATELINE - Medical, insurance groups wary of Trump order seeking price transparency
- June 26, 2019 |
- Walt Williams
Consider joining CEO Update. Membership gives full access to the latest intelligence on association management, career advancement, compensation trends and networking events, as well as hundreds of listings for senior-level association jobs.
Associations representing both hospitals and health insurers say they are likely to fight an executive order signed by President Donald Trump on Monday that would require medical providers to take greater steps to publicize costs for services.
The order gives the Department of Health and Human Services two months to draft a rule requiring hospitals to provide information about their negotiated rates with insurers for common medical procedures, The Wall Street Journal reported. Industry groups are likely to sue, although any legal action will likely be delayed until after the 2020 presidential election, according to the newspaper.
Among the opponents is the American Hospital Association, which noted the order lacks specifics.
"This effort is all about 2020," said Tom Nickels, executive vice president at AHA, told the Journal. "This is their effort to come up with a health-care agenda for 2020."
In a statement, Chip Kahn, CEO of the Federation of American Hospitals, said his group appreciates the order "where it will meet consumer transparency needs."
"If implementing regulations take the wrong course, however, it may undercut the way insurers pay for hospital services resulting in higher spending," Kahn said.
America's Health Insurance Plans also was less than thrilled with the order. In a statement, CEO Matt Eyles said everyone agrees patients should have access to "accurate, real-time information about costs …But publicly disclosing competitively negotiated, proprietary rates will reduce competition and push prices higher—not lower—for consumers, patients and taxpayers." http://bit.ly/2J1KAYE
MORE CEO DATELINE